Kindred Healthcare to be Acquired by Humana and Private Equity Groups

Kindred Healthcare (NYSE: KND) will be acquired for $9.00 per share in cash by Humana (NYSE: HUM), TPG Capital, and Welsh, Carson, Anderson & Stowe (“WCAS”). The total consideration equates to approximately $4.1 billion.

The $9.00-per-share offer represents a 27% premium to Kindred’s 90-day volume-weighted average price.

Kindred operates home health, hospice and community care businesses, long-term acute care hospitals, inpatient rehabilitation facilities and a contract rehabilitation services business. Post transaction, the home health, hospice and community care businesses will be separated and operated as a standalone company owned 40% by Humana. TPG Capital and WCAS will own the remaining 60%. TPG Capital and WCAS will also own the long-term acute care hospitals and the inpatient rehabilitation facilities.

​Kindred’s President and CEO, Benjamin A. Breier, stated, “We are pleased to have reached this agreement, which will deliver significant cash value to Kindred’s stockholders and concludes a robust strategic review undertaken by the Board and management team over the course of 2017. We believe this agreement maximizes value for stockholders and represents a significant step forward in transforming home healthcare in America by enhancing access to care and reducing costs for people living with chronic conditions. In addition, the specialty hospital company,